tiprankstipranks
Trending News
More News >
Avio S.p.A. (IT:AVIO)
:AVIO

Avio S.p.A. (AVIO) AI Stock Analysis

Compare
10 Followers

Top Page

IT

Avio S.p.A.

(LSE:AVIO)

Rating:73Outperform
Price Target:
Avio S.p.A.'s stock is supported by a strong financial position and robust technical momentum. However, challenges in revenue growth and a high P/E ratio raise concerns about overvaluation. The stock's upward momentum is strong but nearing overbought conditions, which warrants careful monitoring.
Positive Factors
Business Developments
Positive business developments support mid-term outlook, with new tactical propulsion orders and the restart of the Vega C and Ariane 6 programs.
Order Book
The order book reached a new record of €1,724mn, exceeding both our forecast of €1,550mn and the guidance range of €1,500mn to €1,600mn thanks to the orders signed in December.
Revenue Growth
Revenues rose to €108mn, up 37% YoY and well above our €85.9mn forecast.
Negative Factors
Guidance
2025 Guidance slightly below estimates, but focus remains on the longer term.
Stock Rating
Despite the positive developments and increased stock price, the rating was changed to HOLD from BUY.
Stock Valuation
Following the recent stock rally, the current valuation fairly captures the company’s short-medium term prospects.

Avio S.p.A. (AVIO) vs. iShares MSCI Italy ETF (EWI)

Avio S.p.A. Business Overview & Revenue Model

Company DescriptionAvio S.p.A., through its subsidiaries, engages in the design, development, and production of propellant propulsion systems for space launchers in Italy and internationally. It is involved in the design, development, and production of solid propellant propulsion systems for tactical missiles; development, integration, and supply of light space launchers; and research and development of low environmental impact propulsion systems, and satellite tracking control motors. The company also offers propulsion boosters, liquid oxygen turbo pumps, and aerodynamic control surfaces. It offers space launchers under the VEGA and ARIANE names. The company was founded in 1984 and is based in Rome, Italy.
How the Company Makes MoneyAvio S.p.A. generates revenue through the design, development, and production of propulsion systems used in space launch vehicles and satellites. The company earns money primarily by securing contracts with government space agencies and private aerospace companies for the supply of its propulsion technologies. A significant portion of Avio's revenue comes from its involvement in the Ariane and Vega programs, where it provides critical components such as solid rocket motors and liquid propulsion systems. Additionally, Avio benefits from partnerships and collaborations with major aerospace entities, contributing to its financial stability and growth.

Avio S.p.A. Financial Statement Overview

Summary
Avio S.p.A. exhibits a sound financial position with strong balance sheet metrics and efficient cost management. However, the company faces challenges in revenue growth and fluctuating free cash flow growth, which highlight areas for improvement.
Income Statement
72
Positive
Avio S.p.A. shows a mixed performance in its income statement. The company faced a significant revenue contraction from 2023 to 2024, indicating challenges in sales growth. However, the gross profit margin remains robust, suggesting effective cost management. The net profit margin is relatively modest, reflecting pressures on profitability despite improvements in EBIT and EBITDA margins, which indicate better operational efficiency.
Balance Sheet
80
Positive
Avio maintains a solid balance sheet with a low debt-to-equity ratio, highlighting prudent financial leverage. The equity ratio is strong, indicating a stable capital structure with significant shareholder equity. Return on Equity (ROE) is moderate, reflecting stable, albeit not exceptional, profitability relative to equity.
Cash Flow
68
Positive
Cash flow analysis reveals moderate strength with positive free cash flow and growth in operating cash flow. However, free cash flow growth rate shows fluctuations, signaling potential cash management issues. The company effectively converts operating cash flow into net income, showcasing good cash flow management relative to earnings.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
312.81M343.70M73.22M740.98M206.11M
Gross Profit
342.72M113.88M72.40M96.64M105.57M
EBIT
8.56M5.23M5.06M8.06M15.14M
EBITDA
25.83M22.41M24.25M29.22M34.43M
Net Income Common Stockholders
6.09M6.49M1.31M8.48M14.12M
Balance SheetCash, Cash Equivalents and Short-Term Investments
101.68M95.59M131.40M104.61M124.67M
Total Assets
1.09B1.06B1.29B1.24B1.12B
Total Debt
11.59M19.46M56.95M47.45M62.03M
Net Debt
-90.09M-76.13M-74.45M-57.16M-62.63M
Total Liabilities
779.52M744.75M982.10M926.12M810.48M
Stockholders Equity
302.83M300.62M293.66M302.48M303.48M
Cash FlowFree Cash Flow
25.10M6.14M33.22M7.54M12.80M
Operating Cash Flow
60.26M42.48M65.74M41.26M47.40M
Investing Cash Flow
-35.16M-38.85M-34.23M-33.71M-34.60M
Financing Cash Flow
-19.01M-39.44M-4.72M-27.59M-32.44M

Avio S.p.A. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.45
Price Trends
50DMA
19.09
Positive
100DMA
17.83
Positive
200DMA
15.25
Positive
Market Momentum
MACD
0.58
Positive
RSI
51.79
Neutral
STOCH
38.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Positive. The current price of 20.45 is above the 20-day moving average (MA) of 20.39, above the 50-day MA of 19.09, and above the 200-day MA of 15.25, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 38.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:AVIO.

Avio S.p.A. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€531.89M87.382.02%0.71%38.67%-6.16%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
€5.20B
€31.23B29.1112.77%0.52%
DE8WD
€301.37M18.6223.79%2.15%
ITNUS
€21.34M18.83
ITYRM
€357.20M13.14
2.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IT:AVIO
Avio S.p.A.
20.45
9.23
82.26%
GB:0QWN
Fincantieri S.p.A.
15.33
10.85
242.19%
GB:0ONG
Leonardo Spa
52.62
28.48
117.98%
DE:8WD
A.L.A. S.p.A.
34.80
14.80
74.00%
IT:NUS
Nusco SpA
1.03
0.01
0.98%
IT:YRM
Rosetti Marino S.p.A.
103.00
58.07
129.25%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.